Business
Founder Shareholders Update
Founder Shareholders Update.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n \nRNS Number : 0451Z Velocity Composites PLC 07 January 2020 \n\n7 January 2020\nVELOCITY COMPOSITES PLC\n(\"Velocity Composites\" or the \"Company\")\n \nRelationship, Orderly Market and Settlement Agreements with Founder Shareholders\n Related Party Transactions\n \nVelocity Composites plc (AIM: VEL.L), the leading supplier of advanced composite material kits to the aerospace market, announces that it has entered into a new relationship agreement (the \"Relationship Agreement\") with the Company's founder shareholders who in aggregate hold approximately 42.8% of the Company's issued ordinary shares, being Velocity Composites Chief Executive Jon Bridges, Gerald Johnson and Christopher Banks (together the \"Founder Shareholders\"). \n \nThe Company also announces that it has entered into settlement agreements with the Founder Shareholders in relation to their removal from office in October 2018 and related matters (the \"Settlement Agreements\") and entered into orderly market agreements in respect of each of the Founder Shareholders shareholdings (the \"Orderly Market Agreements\").\n \nThe Relationship Agreement will regulate aspects of the continuing relationship between the Company and the Founder Shareholders.\n \nRelationship Agreement\nThe Relationship Agreement replaces a previous relationship agreement between, inter alia, the Company and the Founder Shareholders signed on 12 May 2017. Under the Relationship Agreement, each of the Founder Shareholders has undertaken to use his voting rights (and procure that his associates use their voting rights) to ensure that the Company is capable at all times of carrying on its business independently of the Founder Shareholders and that future transactions between the Company and any of the Founder Shareholders are on an arm's length basis and on normal commercial terms. Each of the Founder Shareholders has also undertaken not to take any action that would prevent the Company from complying with any applicable laws or regulations, including Rule 13 (related party transactions) of the AIM Rules for Companies. The Relationship Agreement will terminate with immediate effect when both the following criteria are met, (i) if the interests of each of the Founder Shareholders in voting rights falls below 15%nd (ii) in aggregate the interes...